The Dynamics of Japan’s Major Trading Houses: Opportunities and Challenges

Introduction: Defining Japan’s Major Trading Houses

Japan’s major trading houses, often referred to as the “Big Five,” include Mitsubishi Corporation, Itochu Corporation, Mitsui & Co., Sumitomo Corporation, and Marubeni Corporation. These entities, known as sōgō shōsha, play a crucial role in Japan’s economy, engaging in a wide array of businesses from commodities trading to complex project investments. Despite their prestige and the long-term investment by notable figures like Warren Buffet, these trading houses face significant employee turnover.

Employee Turnover: A Persistent Challenge

Despite the attractive compensation and prestigious reputation of the Big Five, hundreds of employees resign each year. Common grievances include a closed corporate atmosphere, lack of challenging work, and the prevalence of large-company syndrome. A senior executive at Sumitomo Corporation revealed that about 100 employees leave annually. Marubeni reported 100 voluntary resignations in 2021, 117 in 2022, and 97 in 2023, with a turnover rate of around 3%. Mitsui & Co. saw 72 voluntary resignations in 2021, 98 in 2022, and 80 in 2023, reflecting a turnover rate of about 1%. These figures suggest that even in high-performing…